In a move to address the financial challenges facing universities, the British government has announced plans to raise tuition fees for domestic students in England for the first time in eight years. Education Minister Bridget Phillipson confirmed the change on Monday, noting that the annual tuition cost would increase in line with inflation starting next year. The fee will rise to £9,535 (approximately $12,336) for the 2024 academic year, marking the first adjustment since 2017.

“This government has not hesitated to grip the challenges we face and take the tough decisions,” Phillipson stated in Parliament, emphasizing the need to stabilize university finances after years of fee freezes and a decline in international student enrollments.”

The financial situation for many British universities has grown increasingly dire, with nearly half expected to report losses this year. A combination of stagnant tuition fees and a recent reduction in overseas postgraduate enrollments—following immigration reforms by the previous administration—has strained the finances of numerous institutions. Without this intervention, some universities face the possibility of significant cost-cutting measures or even closure, according to the sector’s regulatory body.

British universities, including world-renowned institutions such as Oxford, Cambridge, and Imperial College London, argue that they contribute to innovation, foster global cultural and commercial ties, and fuel the economy by creating more than 760,000 jobs. Unlike American universities with large endowments, British universities rely heavily on tuition and government support, making fee adjustments crucial to their operational stability.

Yet, raising tuition fees is a politically sensitive issue in Britain, where only 9% of the population supports such an increase, according to a recent YouGov poll. Concerns remain that higher costs could deter students from lower-income backgrounds from pursuing higher education.

The timing of the tuition fee hike also adds pressure on Prime Minister Keir Starmer and the Labour Party, who have faced criticism after implementing tax and spending increases to fund public services. Labour, which came to power following a decisive electoral win, has struggled with shifting public opinion. Starmer, who initially advocated for the abolition of tuition fees during his 2020 Labour leadership campaign, later withdrew that position as Labour’s popularity rose in the polls. This week, an opinion poll revealed that Labour’s lead over the Conservative Party has vanished for the first time in three years, underscoring the mounting challenges the government faces in balancing public sentiment with policy decisions aimed at economic sustainability.